10. [Question no: 10 and 11] A production operation is performed with equipment on-hand and labor costs of $75,000 per year. The equipment is very low-maintenance and should last indefinitely. A new equipment item for the same operation, also very low-maintenance but requiring replacement every 6 years, can be purchased for $170,000. It will cut labor costs in half. The firm’s minimum attractive rate-of-return, MARR, is 10 percent. *** [Question no: 6] Should they buy the new equipment.